All Forum Posts by: Eldridge Stroman

Well! I guess it could be just another "Should I Buy" Post! Good day Biggerpockets! I'm considering investing in a 4 bdrm, 2 bath property. Its within walking distance of the local University. Right! If it wasn't for the current situation in the states or the world, It could or would be an automatic "CHA-CHING!!!". 

Well! Here's where my hesitation and question comes in. First I am a Newbie! This will be my first rental property investment. So! I'm sure I know or feel what most of you will say. But let me continue. At this point I haven't personally seen the property, only pics. Again! I know you vets out there like David Greene will say you don't need to see the property in person and I agree. 

From looking at the pics, Its a total rehab! New Roof, New Electric, New Plumbing, and everything else in between. The property is priced at needing a total rehab, 15k and I wouldn't offer that much. From the pics the foundation is solid. I haven't received an estimate yet. Again! I'm a Newbie! so I'm not going to guess what I think the estimate should be. I know that once completed, the ARV could be 90-100k or more. The property is all brick, built in 1955. There's newer homes across the street and down the street walking toward the school. The school itself is doing a lot of building as well. I have the funds to purchase and do some of the work. Obviously I don't want to put all of my cash into rehab. So OPM or Hard money I will need.

The location is a small southern town. About an hour from the major metropolitan city and international airport. The school is the major focal point. My thought is to be within that bubble around the school or be as close as I can to the bubble. I'm pretty much priced out of the city right now. My strategy is secondary or tertiary cities. My wife says to leave it alone. I'm still thinking about it.

So! Should I buy or look for something that will be more manageable for my first?

Thank you for that advice!

I couldn't find this specific topic on the site. So I'm asking! Is it possible to put a contract on a commercial property in order to raise the capital to purchase that property? If so, how far can you push the closing or purchase out?

Good day to all. I'm currently out of the country, a newbie to this world of property investing. Been reading everything I can. Upon my return, I will be buying my first investment property. Looking online everyday at whats out there. I look forward to attending a meetup. Maybe start my own. I'm know stranger to producing functions. Great forum @Riley Oder.

I really do appreciate both of your advice. I will take it to heart, tread lightly and give this careful thought and let the numbers speak for themselves. I do have a contractor that specializes in this type of damage. If the diagnosis is way over my head, I will back out and look for something else. Being that this is potentially my first deal, I make sure not to get emotional about it, play by the numbers. I'm not afraid to admit if I made a bad choice. I don't want my first deal to make me bitter.

Good day Jaron, Thank you for your response. This is an area with multiple duplexes all with similar floor plans & configuration of 2&1. The comps are 150k & up. Rent for each unit, median is $850, roughly $1700. Being that this would be basically brand new, I would push that to at least $950 per unit. 

The rehab estimate will be done in a few days, which is what I'm waiting on to make my final decision. So yes that will be the major factor if I move forward with making an offer.

From that, can you give me a suggested offer price or do you still need more info?

Good day Biggerpockets, This is a exciting time for me. I'm 50 years old & in the beginning process of buying my first investment property, first of many to come. I just didn't have the opportunity nor the resources to make this happen. Now that I do have the resources, I'm making sure my children who are in their early to mid 20's, get into this now & learn everything I'm learning to enjoy the benefits before they hit 50. 

So I'm soliciting your opinions on what I should offer for this property. My goal was & is to buy mostly multi-family properties. This is a duplex, 2bdrm, 1bath. It has fire damage in one unit, which started in the kitchen located in the back of the unit. The fire worked its way into the roof, above the kitchen leaving it open to the elements. The property has been on the market for at least a year and I've been keeping my eyes on it the whole time, hoping I would have this chance. I realize everything that comes with this property. Smoke damage, possible mold. I have a contractor that specializes with this type of rehab. 

Now I know some of you will need more info. Based off the details you do have & your mastery experience. I'm asking for your opinion.
The current asking price is $29900, down from 36900. I will be paying cash for it. Should my mindset be to get the price low as I can or take it and run?

Thank you for the advice. I would say Im doing all that I can do or in the process of doing. Thank you all very much.

If you are a Newbie thats Primed, Ambitious, ready to be all in with Real Estate Investing, but you have "NO" avenues to secure funds for your initial investment due to bad credit. You don't know anybody that can provide Private funds by way of Hard Money etc! You don't want any partners because you've been burned before. Which initially caused the bad credit issue! You've started to save but don't have quite enough to even purchase a decent BRRRR at this point.

What can a NEWBIE do to overcome this? 

This is an obstacle I've been dealing with for a while now. My only solution is continue saving everything possible. I continue to look at properties in markets I wish to invest in. Read self help RE book, Write down all of the ideas I wish to accomplish & hoping a good deal will still be available for purchase. With the possibility of prices coming down due to the virus makes me even more eager and wanting to jump in.